Reunion costs

Reunification costs are those costs associated with the reunification of Germany. In 2007, the reunification costs were put at more than 1,100 billion euros (total net transfer).

The Munich Institute for Economic Research (Ifo) states that the actual costs are likely to be over 2,000 billion euros, far more than the volume forecast in 1990. The “blooming landscapes” forecast at the time are not in sight. For every euro spent in the new federal states, an average of 31 cents still comes from the west.

Germany has to be prepared for the fact that even after the official end of the solidarity pact in 2019, further costs will arise. Social associations complain that the reunification costs are financed through the social systems instead of taxes and that these are therefore financially overloaded.

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